IHRDC Instructional Program 2015

International Human Resources Development Corporation

Instructional Programs

Innovative programs with challenging simulation games that teach the business essentials of todays oil and gas industry.

2015 Catalog

Attended by more than 7,200 oil and gas industry managers from 106 countries.

45YEARS

FOR

About IHRDCIHRDC was founded in 1969 with a commitment to offer international oil and gas companies excellent products and services to train and develop their workforce. In the four decades since then from both our Boston headquarters and our offices in Houston, London, Amsterdam, Abu Dhabi, Kuala Lumpur, Jakarta, and Lagos we have set a worldwide standard of excellence through our Instructional Programs, e-Learning and Knowledge Solutions, and Competency Management. Our offerings are being used daily by thousands of industry leaders.

For more information go to www.ihrdc.com.

welcome to IHRDCs 2015 Instructional Programs Catalog

Our programs have a strong reputation because of our excellent instructors, who have many years of industry experience, our time-tested learning format an equal mix of lectures and team participation in unique and challenging business simulation games that enhance learning, and the evening events we organize for participants whether in Boston or Cambridge. For a better appreciation of our programs please listen to the testimonials of our many past participants at www.ihrdc.com/instructionalprograms.

We offer our Petroleum Industry Foundation Programs in the spring (April through June) and fall (September through November) in both boston andCambridge, u.K. The list of Boston Programs for 2015 begins on page 2 in this Catalog and those for Cambridge on page 32. We encourage you to examine the content of the programs and select one or more for enrollment in 2015.

Please note that included in the Boston Programs is a timely two-week certificate program International LNg business Management Certificate Program devoted to the business fundamentals of LNG and the management of major international petroleum projects. Its challenging simulation game involves the design and development of a major LNG Project in East Africa. With the growing need for natural gas in the worlds energy mix, this is an important offering for you to consider.

IHRDC can also bring training directly to your organization by contracting for one of our Oil and Gas Business Workshops. These intensive, in-house programs guarantee a practical, private, and effective learning experience for you and your colleagues. We recommend you review these wide-ranging offerings, beginning on page 24, and let us know how we can assist in fulfilling your training needs.

I encourage you to look at each of the programs in this catalog, choose the one that best meets your needs, and enroll as early as possible. Enrollment can be accomplished online and, when completed, we will help you with hotel accommodations, visa letters, and other details. To enroll, simply go to www.ihrdc.com/instructionalprograms/enroll. We look forward to seeing you in 2015.

Sincerely,

David A.T. Donohue PhD, JDPresident and Program Director

Dear Colleague:

Keeping up to date with industry developments and expanding our knowledge and skills on a regular basis are essential to a successful career in the international oil and gas industry.

With this in mind, I invite you and your colleagues to attend one of the outstanding, time-tested oil and gas industry management programs that we will offer in boston, Cambridge, u.K., and internationally in 2015. These programs, updated and expanded regularly, will provide you with outstanding career development opportunities and a chance to network and share your challenges with peers from major oil companies, international independents, national oil companies, service companies, and government agencies from more than 40 countries.

Table of ContentsThe unique IHRDC Experience 02 IHRDC Oil and gas Management Programs:BOSTON

01: International Petroleum business Program 04 mAY 11 22, 2015

02: 22nd Annual International gas business Management Certificate Program 06

mAY 11 22 OR OCTOBER 12 23, 2015

03: Financial Modeling and Petroleum Project Economics 08

jUNE 1 12 OR SEPTEmBER 14 25, 2015

04: Advanced Petroleum Management Program: Enterprise-wide Leadership in Times of Change 10 jUNE 1 12, 2015

05: International LNg business Management Certificate Program 12 jUNE 15 26, 2015

06: Essential skills for Oil and gas Professionals 14 jUNE 15 26, 2015

07: 25th Annual International Petroleum Management Certificate Program 16 SEPTEmBER 14 OCTOBER 9, 2015

08: HR Processes, Competency Development, and Change Management Program 20

SEPTEmBER 28 OCTOBER 9, 2015

09: International Petroleum Law workshop 22 OCTOBER 19 23, 2015

IHRDC Oil and gas business workshops: 24BAL I , DAR ES SALAAm, LONDON, NAIROB I

International gas business workshop 26mARCH 23 27 OR APR I L 13 17 OR NOVEmBER 16 20, 2015

Overview of the International Petroleum business 27APR I L 20 24, 2015

Optimizing gas Processing, Refining, and Petrochemical Facilities 29APR I L 13 17, 2015

Petroleum Project Economics and Risk Analysis 29mARCH 16 20 OR NOVEmBER 16 20, 2015

Instructor biographies 39

Enrollment Information/Forms 48

About IHRDC 51

Instructional Programs Client List 52

The superb IHRDC-Invincible Energy Experience 32

IHRDC-Invincible Energy Programs: CAmBR IDGE U.k., GENEVA, S INGAPORE

10: Economics of the Oil supply Chain 34 APR I L 20 24 OR OCTOBER 5 9, 2015

11: Trading Oil on International Markets 35 APR I L 27 mAY 1 OR OCTOBER 12 16, 2015

12: Oil Operations and Logistics 36 mAY 20 22 OR SEPTEmBER 21 23, 2015

13: International Oil Trading and Price Risk Management 37 jUNE 1 3 OR OCTOBER 26 28, 2015

14: Price Risk Management in the Oil Industry 38 jUNE 8 12 OR NOVEmBER 9 13, 2015

Copyright 2014 International Human Resources Development Corporation. All rights reserved.

02 03

The IHRDC Experience Combines Learning Excellence and Attention to Your Needs

For 45 years, IHRDC has been a worldwide leader in training and

competency development for the international oil and gas industry. Our

Instructional Programs have gained a reputation for excellence in the

industry for all of these years because of their unique design, superior

instructors, and attention to participants needs throughout their stay.

Engaging Instructional Format

Our unique and highly regarded instructional design combines lectures by experienced oil and gas business specialists with challenging proprietary IHRDC business games. Classroom sessions include timely, comprehensive, practical, and challenging topic matter. Our business workshops allow participants to internalize learning through team discussion and decision-making that reflect real-life business opportunities. Our programs feature instructors and mentors who make it a priority to provide a first-rate learning experience.

Exciting Historical and Cultural LocationIHRDCs Oil and Gas Management Programs are offered annually in Boston, Massachusetts, U.S.A. This friendly and attractive city boasts countless cultural and historic attractions, world-renowned academic institutions, exciting sporting venues, excellent restaurants and hotels, and a wide variety of shopping opportunities. Plus, its known as the walking city and has terrific public transportation theres no need for a car!

Stimulating Social Events and Cultural ActivitiesWe want you to feel at home during your stay in Boston. With this in mind, IHRDC provides a Program Coordinator to assist you with your non-program needs. The Program Coordinator will also organize social events during the evenings and bus tours to regional sites of interest on the weekends. IHRDC personnel will guide you on evening group tours of select Boston and Cambridge museums, Harvard and MIT universities, help you explore the Charles River and Boston Harbor via boat rides, and facilitate weekend visits to mountains and seaports in Maine, New Hampshire, and Rhode Island. Our planned social events include group dinners at favorite local restaurants, theater outings, concerts, sporting events, and special shopping tours to regional outlet malls.

Invaluable Networking OpportunitiesBy attending both classroom and social events with colleagues from all over the world, you will have a wonderful chance to learn from and network with some of the brightest professionals in the industry.

2014 Participant

The course was, without a doubt, one of the very best I have ever attended. Superb instructors, quality teaching, comprehensive course notes, excellent team interaction through section building exercises, a superb extracurricular activity program in Boston, and the environment to ensure that we all made the most of our time in your wonderful city.

INTERNATIONAL PETROLEUM BUSINESS GAME: SANDLAND

This business game is an integral part of the learning process. Participants, divided into teams, make real-life technical, financial, and market decisions that commonly confront managers in the international petroleum business today. Team performance is measured on a financial basis and is catalyzed by healthy competition.

The international petroleum business game takes place in Sandland, a fictitious country on the west coast of Africa. Team objectives include developing oil and gas reserves and deciding on the optimal way to develop and market the production. During each workshop session, teams are provided with technical and economic background that serves as basis for decisions to be made during that session. Team decisions are made and require a commitment of both capital and operating funds and occur during the following intervals: three years of exploration, two years of development, and fifteen years of production.

WORKSHOP SESSIONS INCLUDE:

n Introduction to the workshop

n Negotiating the right to explore in Sandland

n The exploration survey stage

n Exploration and delineation drilling

n Reserves estimation and field development

n Gas processing

n Oil and gas pipelines and port facilities

n Sandland operations accounting

n Combined-cycle power plants

n Oil tanker charter decisions

n Refinery development decisions

n Financing the port expansion

n Ammonia plants

n Gas export pipeline decisions

n Crude oil marketing decisions

n Strategic planning and decision analysis

n Evaluation of performance and presentation of results

Ann

RefinerySite

Highway 1A

High

way 1

San

dland

River

AtlanticOcean

Ann

BradsCove

SandlandNational Forest


WHO SHOULD ATTENDThis program is intended for managers in the many functional areas of the international petroleum and natural gas industry, such as exploration, production, refinery and petrochemical operations, marketing, law, human resources, accounting, and finance.

INSTRUCTORSDavid A. T. Donohue, PhD, JDMeg Annesley, BSErhan Aslan, PhDCharles Brankman, PhDY. Serdar Dogulu, PhDBradford R. Donohue, MBA, CFAMarshall E. Frank, MSJohn B. (Jack) King, MBAShashi Kumar, PhDMichael Lynch, MSCarlos Peralta, MBAKris Ramanadhan, PhDRobert W. Taylor, MSLaura Varela, MS Eng

Note: The content of this two-unit program is the same as the first

two units of IHRDCs four-week International Petroleum

Management Certificate Program held during September

(featured on pages 16-17).

Overview of the Energy Industry Oil and gas measurements and units; the value chains; market structures; worldwide oil and gas economics; major players; evolution of the integrated oil and gas business.

Host Government AgreementsTypical host country exploration agreements: summary of the history and key provisions, including bonus payments, royalties, taxes; production sharing; participation arrangements.

Exploration MethodsThe exploration process: petroleum geology, exploration geophysics, well logging, developing exploration prospects, preparing and interpreting geological maps; case studies.

Drilling and Well CompletionsPlanning the well; logistics; drilling functions; drilling procedures; formation evaluation methods; horizontal wells; improvements in drilling.

Field Development and Production CycleOnshore and offshore field development and long-term production subsurface design; reservoir fundamentals and reserves estimation: field development; inflow performance; integrated reservoir management; and enhanced recovery. Surface facilities design: design for both onshore and offshore operations; production operations and management; investment analysis and reporting of performance; case studies.

Gas Processing and Marketing of LPGsProperties of gas and gas liquids; processing of associated gas; markets for LPGs; economics of natural gas plants.

Crude Oil and Natural Gas Pipeline SystemsIntroduction to crude oil and natural gas pipelines; design, construction and operation of pipeline systems; estimating project costs; pipeline contracts and tariffs; new pipeline developments.

Measuring Financial PerformanceHow companies report to their shareholders; GAAP principles; income statement; balance sheet; cash flow statement; equity statement; taxation and tax codes; preparing corporate financials; the audit; reading a major company annual report; measures of performance and the setting of company goals.

Petroleum Industry Accounting and TaxationSuccessful efforts vs. full-cost accounting; corporate taxation; petroleum taxation; accounting for host government and joint venture agreements; supplemental reserves reports included in annual reports.

Unconventional Oil and Gas ResourcesA comprehensive and practical understanding of the processes that are applied in the development of unconventional oil and gas projects, by looking at some active investment areas.

Energy Project EconomicsEconomic yardsticks; project cash flow before and after tax; tax expenses and benefits; net cash flow stream and payout; time value of money; opportunity cost and present value of net cash flow; discounted cash flow analysis and internal rate of return; risk assessment and sensitivity analysis; examples of the economic analysis of energy projects.

Worldwide Petroleum EconomicsWorldwide energy supply; demand; reserves; pricing; corporate strategy; recent history and prediction of future trends; how petroleum economists make predictions.

Markets for Associated Natural GasThe natural gas chain: industry structure and regional markets, interfuel competition; gas distribution; regulation and deregulation; economics and markets for gas, including combined-cycle power plants, LNG, ammonia, methanol, and gas-to-liquids.

Refining and PetrochemicalsRefinery: capacity evolution; technology changes; capital and operating costs; profitability; net-back estimation and recent trends. Petrochemicals in perspective: links to refining; key product families; industry drivers: cost of production, supply and demand; profitability and price forecasting; prospects for the future: maturity, environmental concerns, global competition.

Crude Oil Tanker TransportationThe tanker industry and market trends: an overview of the main characteristics of crude tankers; capital and operating costs; pollution at sea and the new regulations; calculating tanker transportation rates; Worldscale and charter arrangements.

Marketing of Crude Oil and ProductsDevelopment of the free market for oil; current international market structure; regional markets: physicals, futures, forwards, derivatives, options; roles of participants, price formation, price volatility; price reporting; crude oil and product pricing; negotiating and pricing petroleum sales contracts; introduction to hedging and price risk management.

Products DistributionDistribution and retail marketing of petroleum products; structure of the margins realized along the distribution value chain; transitions in the marketing of transportation fuels; economics of the modern gasoline station.

04 05

UNIT ONE MAY 11 15, 2015

UPSTREAM SECTORS, PROJECT ECONOMICS, AND PETROLEUM ACCOUNTING

This program provides managers in the worldwide petroleum industry with an in-depth understanding of the key aspects of the upstream and downstream petroleum business. It explores the important functional management issues today, including technical, financial, marketing, and petroleum accounting. The instructional format is a compelling combination of formal presentations by industry experts and team participation in a challenging business workshop.01

Excellent program. With what I have learned, I

now have a robust knowledge of my industry.2014 Participant

learn more or register for programs at www.ihrdc.com

FULL PROGRAM DATES: MAY 11 22, 2015

UNIT TWO MAY 18 22, 2015

DOWNSTREAM SECTORS AND PETROLEUM ECONOMICS

International Petroleum Business Program

PristineBeaches

Expetra

Atlantic Ocean

Africa

Europe

North America

South America

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PristineBeaches

Expetra

Atlantic Ocean

Africa

Europe

North America

South America

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International Gas Business Management Certificate ProgramThrough a careful balance of lectures by leading experts and challenging workshop sessions, this two-week program provides a comprehensive working knowledge of the technology, economics, finance, and markets that shape and affect the international gas industry today. It also teaches the management skills needed to develop projects and increase performance within an integrated gas business environment.

ATLANTIC BASIN GAS BUSINESS GAME: EXPETRA

This business game is an integral part of the learning process. Participants, divided into teams, make real-life technical, financial, and market decisions that commonly confront managers in the international gas business today. Team performance is measured on a financial basis and is catalyzed by healthy competition.

The challenging Atlantic Basin business game takes place in Expetra, a small island country in the Caribbean, north of Trinidad. Gas and condensates are expected to be discovered in the deep offshore. Teams enter into exploration agreements, explore for and discover hydrocarbon resources, and then decide on the best way to market them over a 15-year production period. Markets include LNG exports to the U.S. and Europe, LPG and ethylene plants, gas pipeline to Miami, gas distribution and storage operations in the U.S., power plants in the U.S. and Expetra, and export-focused ammonia, methanol, and gas-to-liquids plants in Expetra.


n Introduction to the exploration opportunity

n Negotiation of the exploration and

development agreement

n Seismic exploration and mapping of seismic results

n Exploration drilling and reserves estimation

n Gas processing, LPG, and ethylene market decisions

n Gas field pipeline decisions

n Integrating load balancing and pipeline facilities

n Gas-fired power plant market decisions

n Acquiring a gas distribution business in the U.S.

n Assessment of methanol, ammonia, and GTL markets

n Export pipeline from Expetra to Miami

n Assessing two LNG market opportunities

n Integrated field development and market decisions

n Decisions during the project lifecycle

WHO SHOULD ATTENDThis program is intended for specialists in one or more functional areas of the international energy industry who seek a comprehensive understanding of the gas industry. Many participants have said this is the best program in the industry today, due to its broad scope, challenge, realism, and fun.

INSTRUCTORSDavid A. T. Donohue, PhD, JDErhan Aslan, PhDCharles Brankman, PhDY. Serdar Dogulu, PhDBradford R. Donohue, MBA, CFAMarshall E. Frank, MSSamy H. Ibrahim, MSJohn B. (Jack) King, MBACarlos Peralta, MBAKris Ramanadhan, PhDRobert W. Taylor, MSLaura Varela, MS Eng

Overview of the International Gas IndustryGas measurements and units; the gas chain; market structures; worldwide natural gas economics; major players; evolution of the integrated gas-power business.




Energy Project EconomicsEconomic yardsticks; project cash flow before and after tax; tax expenses and benefits; net cash flow stream and payout; time value of money; discounted cash flow analysis and internal rate of return; risk assessment and sensitivity analysis.

Unconventional Gas ResourcesA comprehensive and practical understanding of the processes that are applied in the development of unconventional gas projects, by looking at an active investment area: the Marcellus shale project in the United States.

Gas Field Performance and Reserves EstimationOverview of production and reservoir management in the gas system; production technology; well testing; reservoir performance; reserves estimation.

Gas Processing: Technology, Economics, LPG, and Ethylene MarketsOverview of gas processing systems; liquid separation processes; LPG fractionation options; compression; engineering design and contracting methods; the market for LPGs; project feasibility and economics; ethylene processing, economics, and markets.

Gas Pipeline SystemsMajor considerations in the cost-effective design, construction, and operation of gas pipeline systems; system design variables: impact on cost and capacity; estimating project costs; pipeline load factors; typical pipeline tariff; examples of recent pipeline construction costs.

Load Balancing Systems and TariffsNeeds for load balancing and system and customer benefits; storage options, capital and operating costs: underground, cavern, and LNG facilities; operational procedures; new options for marketing storage services; case examples.

Gas Sales ContractsTypical terms in gas sales contracts; price-volume; risk allocation; from gas contracts to tariffs; indexing; re-openers; typical contract examples.

Measuring Financial PerformanceReview of financial statements: income statement, balance sheet, cash flow, and shareholders equity; capital and operating costs; measurements of financial performance; benchmarking; taxation; the accounting and audit process.

Gas Market Analysis and PricingThe need to identify gas markets early; gas market analysis; netback pricing and interfuel competition; market segments and market opportunities.

Gas-Fired Power PlantsOverview of combined-cycle gas turbine power systems; technology: plant design, fuel efficiency, available packages; project feasibility: capital costs, economics, risk, financing, contracts, markets, capital and operating cost estimating; contracting for fuel supply and power sales; worldwide power trends; examples of recent and planned projects.

Overview of LNG BusinessOverview of the role of LNG within the gas chain; technology: LNG plants, liquefaction, ship design and operations, LNG re-gasification units; LNG project feasibility: capital costs, economics, risk, financing, markets; LNG plant design: gas reserves to support a plant, contract prices, contracting; examples of recently completed and planned projects.

Petrochemical Uses for Natural Gas: Methanol, Ammonia, and Gas-to-Liquids ConversionUse of gas for ammonia and methanol and conversion to liquid fuels; processes for conversion of gas to methanol; markets and project economics; ammonia and fertilizers: source of supply, types of processes, intermediate and end products, markets; project economics; examples of recent and planned projects; gas-to-liquids conversion; available technology; major players; capital and operating costs; economic analysis.

Gas DistributionOverview of the gas distribution system; types of customers and load factors; competition from other fuels; sources of gas supply: gas supply contracts, prices, character of gas

supply; structure and regulation of local distribution companies (LDCs); marketing demands; design and construction of distribution systems; expansion; operations: load balancing, distribution planning, maintenance, environmental considerations, rate-making policies and practices.

Project Financing: Commercial Debt Structuring and Case StudyCorporate and project financing; sources of debt and equity financing; public and private sources of capital; multilateral and bilateral sources of financing; risk assessment and mitigation; structuring of financing; preparing the financing plan; negotiating the term sheet; preparing the financing documents; closing. Case studies examples of project financing: Qatar Gas Project; Colombia Power Project; U.S. Gas Storage Project.

Industry Regulation, Deregulation, and Convergence The nature of regulation in the energy sector; history and current state of the gas industry deregulation process at the wholesale and retail markets: U.S., Europe, and elsewhere; effect of deregulation on the structure of the industry; convergence of gas and power.

Marketing Natural Gas in anOpen Access EnvironmentU.S. market structure; basic deal types and where they are done; the commercial organization; and current issues in U.S. natural gas markets.

Managing Energy Price and Volume Risks: Futures and HedgingThe history of energy price risk management; physical, forward, and futures markets; typical futures market transactions; hedging, swaps, and options; volume risk management; weather derivatives.

06 07

UNIT ONE MAY 11 15, 2015 /OCTOBER 12 16, 2015

UPSTREAM GAS BUSINESS

02


FULL PROGRAM DATES: MAY 11 22, 2015 OCTOBER 12 23, 2015

UNIT TWO MAY 18 22, 2015 /OCTOBER 19 23, 2015

DOWNSTREAM GAS BUSINESS

22nd Annual

Financial Modeling and Petroleum Project EconomicsDuring these two units, you will gain an integrated and practical understanding of financial analysis tools and techniques for the oil and gas industry that are related to building proforma project analysis, learning different methods of financial analysis, and applying different risk analysis tools to projects. The instructional format capitalizes on a careful balance of formal lectures by leading experts and specially developed workshops and business games.

FINANCIAL ANALYSIS BUSINESS GAME: OCEANA

This business game is an integral part of the learning process. Participants, divided into teams, make real-life technical, financial, and market decisions that commonly confront managers today. Team performance is measured on a financial basis and is catalyzed by healthy competition.

Participants, working in teams, will evaluate an oil and gas business opportunity in the Republic of Oceana, near Indonesia. They build a financial model that will integrate various risks associated with the investment. This model will utilize a proposed Production Sharing Agreement and incorporate revenue, capital and operating costs, financing costs, and tax projections for the life of the project.

Throughout the program, teams will add layers of complexity to the model by incorporating the different types of risk analysis tools presented in the lectures. The teams will present their project analysis to a decision review board by outlining the risk profile and expected performance measures of the project. They then learn the outcome of those decisions. Emphasis will be placed on the practical implementation of the tools presented in lecture and on developing practical financial modeling skills.


n Modeling the production sharing agreement

n Building the base-case proforma financial statements

n Calculating standard measures of performance

n Sensitivity and scenario analysis

n Decision trees and expected monetary value

n Monte Carlo simulation

n Project selections, stakeholder, and

financial analysis

n Simulation of team investments in the

economic environment


WHO SHOULD ATTENDThis program is designed specifically for energy managers, supervisors, and key employees from broad functional areas, such as finance, technology, and project development who wish to expand their knowledge of financial modeling and petroleum project economics.

INSTRUCTORSDavid A. T. Donohue, PhD, JD Erhan Aslan, PhDCharles Brankman, PhDBradford R. Donohue, MBA, CFAJohn B. (Jack) King, MBAMichael Kraten, PhD, CPACarlos Peralta, MBARick Squires, MS

Overview of the Petroleum Industry TodayOil and gas measurements and units; value chains; market structures; worldwide oil and gas economics; major players; evolution of the integrated oil and gas business.

Introduction to Accounting and Financial StatementsBasic financial and accounting concepts and standard technology; depreciation, impairment, and acquisition accounting; financial statements; accounting for investments; equity methods and consolidations.

Financial Statement AnalysisBackground needed to understand and build models of the four key corporate financial statements; review and discussion of key measures of financial performance; consideration of the measures used by major companies and of participants companies; steps required to build proforma financial projections.

Overview of Oil and Gas AccountingDefinition of various industry terms; classification of reserves and resources; introduction of two major accounting options to account for oil and gas costs: successful efforts and full cost; GAAP filing and valuation methods to comply with SEC filing requirements, including asset impairment and asset retirement obligations.

Project Financing: Commercial Debt FinanceCorporate and project financing; sources of debt and equity financing; public and private sources of capital; multilateral and bilateral sources of financing; risk assessment and mitigation; structuring of financing; preparing the financing plan; negotiating the term sheet; preparing the financing documents; closing. Case studies examples of project financing: Qatar Gas Project; Colombia Power Project; U.S. Gas Storage Project.

Energy Project Economics and Measures of PerformanceProject cash flow analysis, discounting cash flow to obtain present value and internal rate of return, the cost of capital and the effect of debt financing, other measures of project performance; sensitivity to changes in key variables.

The Business ModelUsing the balanced scorecard framework, regression analysis, and flexible budgeting, how does the organization earn profits? What are the key strategic drivers of financial success?

Cost and Expenses True costs of developing and delivering products and services; using gross profit analysis, activity-based costing techniques, and cost variance schedules.

Financial StatementsUsing the business model, volume, expense, and revenue data to construct and understand financial reports; using balance sheets, income statements, cash flow statements, ratio analysis, and performance outcome measurements.

Introduction to Petroleum Economics The fundamentals of economics: background and its application to the oil and gas industries.

Energy Project Risk and Uncertainty Identifying and quantifying energy projects risks and uncertainty into project analysis; using statistical measures to quantify risk; two key risk assessment methods: scenario analysis and sensitivity analysis.

Event IdentificationIdentifying trouble spots that threaten the organizations ability to generate profit and value, using event inventories, target risk-return profiles, risk tolerance levels, and event tracking processes.

Probability Theory and Quantitative AnalysisIntroduction to probability theory, including probability density functions, overview of typical probability distributions and definition of key terms; applying probability theory in decision analysis with emphasis on concept of expected value.

Decision Tree AnalysisApplying a structured method for investment decision analysis; understanding the implications of different sets of decisions; identifying areas to reduce risk and understand economic opportunity cost of capital; identifying implications of various forms of contracts; analyzing implications of incremental project decisions.

Risk AssessmentPrioritizing trouble spots by likelihood of occurrence and potential impact. Using likelihood and impact tables, inherent and residual risk charts, and heat maps.

Risk ResponseAssessing the organizations ability to respond to trouble spot flare-ups on paper and in reality. Using avoidance, sharing, reduction, and acceptance practices, as well as portfolio analysis techniques.

Monte Carlo Simulation Extending the decision tree analysis framework for situations that include continuous probability scenarios; identifying the power and limitations of simulations, emphasis placed on relevance of expected value; Crystal Ball commercial software used to model risk in financial model.

Field Development, Reservoir Performance, and Surface FacilitiesFormation evaluation; estimating reserves; field development; inflow performance; surface facilities design for both onshore and offshore operations; integrated reservoir management; enhanced recovery.

Managing Energy Price and Volume Risks: Futures and HedgingThe history of energy price risk management; physical, forward, and futures markets; typical futures market transactions; hedging, swaps, and options; volume risk management; weather derivatives.

Portfolio Theory and Real OptionsIntroduction to and discussion of Real Options and Portfolio Optimization, two other key methods used extensively today by many oil companies to evaluate project opportunities; understanding how a collection of investments can decrease overall risk in the portfolio.

08 09

UNIT ONE JUNE 1 5, 2015 /SEPTEMBER 14 18, 2015

FINANCIAL MODELING FOR THE OIL AND GAS INDUSTRY

03


FULL PROGRAM DATES: JUNE 1 12, 2015SEPTEMBER 14 25, 2015

UNIT TWO JUNE 8 12, 2015 /SEPTEMBER 21 25, 2015

PETROLEUM PROJECT ECONOMICS AND RISK ANALYSIS

Oceana Industrial Park

Java Sea

Republic of Oceana Republic of Oceana

Subsurface Structural Map

Baru Prospect

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Advanced Petroleum Management Program: Enterprise-Wide Leadership in Times of ChangeThis program focuses on managing and leading international oil and gas enterprises during times of change and maximizing overall performance. Its objectives are achieved through group discussions of business case studies and team participation in an enterprise-wide business simulation game. The simulation game will challenge teams to plan and manage the growth of an organization as it faces a series of strategic decisions that require the assessment of international, national, and local trends and policies, portfolio performance, enterprise resources, as well as environmental and business risks.

GROWING THE INTERNATIONAL AFFILIATE OF A NATIONAL OIL COMPANY: WANOCO

You are the senior executive in charge of managing the development and expansion of WANOCO International, the international affiliate of the West African National Oil Company. Your challenge is to build a profitable oil and gas enterprise in Latin America and Africa. At the outset of the business game, you manage a set of oil and gas industry assets that have mixed levels of performance. As new opportunities arise, you are asked to make decisions that lead to an optimal portfolio. You will measure the attractiveness of each opportunity based on commercial, financial, political, social, regulatory, and other characteristics, and implement your decisions effectively. In the process, you will respond to many different business challenges. Teams participate over a simulated 20-year time span and report final performance results.

WHO SHOULD ATTENDThis program is designed for international oil and gas managers and executives who seek to enhance their skills in managing and leading international oil and gas enterprises during times of change so as to maximize overall performance.

INSTRUCTORSDavid A. T. Donohue, PhD, JDCharles Brankman, PhDY. Serdar Dogulu, PhDRobert Meyer, MA Robert F. Ryan, MSJack A. Slotnick, CPEARobert W. Taylor, MS

Global, Regional, and Local Industry Trends and ExpectationsIdentification of global trends that affect all businesses; petroleum industry trends; local and regional issues that affect the local energy businesses. Current conditions and growth forecasts of the business environment.

Enterprise Business Fundamentals

Strategic Planning Vision and mission statements, goals, objectives, organizational structure, and the processes for managing change.

Measuring Corporate Financial Performance Historical and pro forma financial statements, portfolio analysis, capacity to obtain additional capital resources.

Characterizing the Existing Businesses Participants will analyze and characterize the portfolio of the existing projects and rank them according to business performance fundamentals and the strategic objectives of the enterprise. This provides a greater understanding of the contribution of each business to the portfolio, their current tangible and intangible benefits, threats, shortcomings, and the links between them.

Stage-Gate Project Management SystemTeams will apply the Stage-Gate project management process to benchmark performance, satisfy stakeholder objectives, allow scrutiny of recommendations and risks, and conduct a formal review at end of each stage.

International Affiliates of NOCsFormation of new business models and alliances; changing roles in global and local markets; implications on the supply of oil and gas resources.

WORkSHOP ACTIVITIES:

Round One DecisionsEach team will evaluate new investment opportunities and, if it wishes, divest its interest in existing businesses. They will also conduct SWOT analyses and business profiling exercises.

Round Two DecisionsFive years after the Round One decisions, teams receive an update on the performance of their enterprise businesses, the current business environment, and any changes in the world, petroleum, and local trends that may have occurred. They are offered a new slate of business opportunities to consider. These decisions continue during the planning, construction, startup, and operation of all new undertakings.

Analysis and Presentations of Results Teams prepare and deliver presentations in response to Rounds One and Twos workshop activities.

Creating Effective Sustainability ProgramsOptions to implement sustainability programs within the developing world; linkages between sustainability and social responsibility. Petroleum industry case studies.

Sustainability Scorecard: How Do Companies Measure Performance?How companies and the industry measure sustainability success; review and discussion of industry guidelines and recent company reports; sustainability reporting and guidelines; global reporting initiatives; IP/ECA/API.

Managing Effective Environmental Impact ProgramsDesign and implementation of successful environmental management programs; the World Bank standards for preparing environmental impact statements; review of recent EIS programs.

Building and Maintaining a Safety CultureDesign and implementation of a safety culture; the role of management; recognition of employees. Case studies of companies which have implemented successful programs, Chevrons Agbami case study.

Leadership Fundamentals Participants will explore, through the use of business case studies, the fundamentals of leadership and managing enterprise growth. They will learn how leaders manage change, especially for international enterprises.

Developing a Competent National WorkforceThe process of planning, managing, and implementing a competency management system to enhance the performance of the national workforce. Case studies of successful competency management system implementations.

Managing Local Political Disputes and Security of AssetsAnticipating and managing disputes which involve ownership claims by indigenous populations or failure to distribute petroleum revenues to local communities; managing security of assets and preventing disruption of production.

Social MediaThe role and value of social media while managing an international petroleum enterprise. Social media best practices and common mistakes.

WORkSHOP ACTIVITIES:

Round Three Decisions: Planning and Implementing Sustainability ProgramsTeams are asked to develop comprehensive sustainability programs for one or more of their investments. They will be asked to make a case for change in a business.

Round Four Decisions: Responding to Incidents Teams are asked to respond to an HSE incident and make a new set of commercial decisions, five years after Round Three decisions.

Analysis and Presentation of Results Teams receive the financial performance of their enterprise over a 20-year period and prepare presentations of their major decisions and their overall impact.

10 11

UNIT ONE JUNE 1 5, 2015

GROWING THE ORGANIZATION IN RESPONSE TO COMPLEX BUSINESS DRIVERS

04


FULL PROGRAM DATES: JUNE 1 12, 2015

UNIT TWO JUNE 8 12, 2015

SUSTAINABILITY: ANTICIPATING ENVIRONMENTAL, SOCIAL,

AND ORGANIZATIONAL CHALLENGES

IHRDCs Robert Taylor conducts a lecture session in the

IHRDC Management Institute.

International LNG Business Management Certificate ProgramThis two-week, major capital project program is ideal for those who wish to learn how major LNG projects are developed, from concept to operation. Unit one is devoted to LNG fundamentals including LNG market history, pricing and trends; major players along the LNG value chain; application of Stages 1 and 2 of the Stage-Gate process; LNG project assessment and development planning: from supply to delivery including, gas resources, gas field development, LNG technologies, and major commercial requirements.

Unit two reflects how LNG and other major oil and gas capital projects are completed on time and within budget. It is devoted to the application of Stages 3-5 of the Stage-Gate process: from commissioning the Front-End Engineering (FEED) study to obtaining Final Investment Decision (FID); planning, selecting, and managing EPC contracting, commissioning, and, after in-service, project reappraisal, startup, and operation.

MANAGING AN LNG PROJECT BUSINESS GAME: COSMOS

Your company has made a major rich gas discovery offshore the Republic of Cosmos in East Africa, and your team has been asked to manage its development as a major LNG export project following the Stage-Gate project management process.

In the first week, you will progress the project through Stages One and Two. In Stage Two you will assess the gas resource, define the scope of the LNG project, and state the business case for development. During Stage Two you will consider development options including technology selection, conceptual design, execution strategy, costs and schedule estimates, and project financing.

During the second week, your team will continue developing the LNG project through Stage Three (Front End Engineering Design and Final Investment Decision), Stage Four (Engineering Design Procurement and Construction), and Stage Five (Startup and Operations).

Throughout the workshop sessions, teams of participants will face important decisions associated with the commercial, legal, financial, design, planning, and development of this challenging LNG project. They will assess and contract to sell LNG to various market opportunities (Brazil, China, U.K., and spot market), negotiate project financing, and develop and execute the project while considering realistic challenges and constraints that are typically faced by the developers of large energy projects. Participants will present their teams decisions and business results in a friendly learning competition to win the team prize.

WHO SHOULD ATTENDThis program will benefit managers, government officials, and specialists in one or more functional areas of the international energy industry who seek a comprehensive understanding of the liquefied natural gas sector of the international gas industry and/or how major oil and gas industry capital projects are successfully managed. It is an ideal supplement to IHRDCs gas industry foundation program, The International Gas Business Management Certificate Program, which many participants refer to as the best program in the industry today.

INSTRUCTORSDavid A.T. Donohue, PhD, JDErhan Aslan, PhDCharles Brankman, PhDY. Serdar Dogulu, PhDJohn B. (Jack) King, MBAKris Ramanadhan, PhD

Gas Fundamentals: Gas Hydrocarbon Properties and ConversionNatural gas hydrocarbons and their chemical properties, gas volume, and thermal energy measures; gas industry terminology and LNG acronyms. Gas quality, heating value, density, gas liquid yield; comparative energy value analysis: natural gas, LPGs, condensate, LNG.

Gas Market Fundamentals Gas Market FundamentalsOverview of the International Gas MarketsLNG Value Chain, Global Market History and Trends

Market structure and value chain; gas market sectors; historical gas market supply and demand in various regions of the world and projected future demand. LNG value chain; LNG business history; future market trends. Pricing options: base and indexing options; liberalized market pricing; current pricing in Asia, Europe, North America, potential hybrid pricing. Locations of supply, liquefaction, receiving terminals. Key players: sellers, buyers, NOCs, IOCs, lenders and banks, joint ventures, ministries, legal firms.

LNG Project FundamentalsOverview of Gas Supply for an LNG ProjectLNG Liquefaction PlantsLNG Transportation and Receiving Terminals

Gas supply: exploration, drilling, resource estimation, field development; natural gas processing, gas liquids, market options; LNG liquefaction plants: design, technology, development schedule, capital costs; LNG ships: technology, operating fundamentals and capital costs, ship ownership options; LNG receiving terminals: design, technology, capital costs, third party tariffs.

LNG Legal FundamentalsLNG Sales and Purchase Agreements: History, Protocols, and DocumentsLNG Shipping AgreementsLNG Joint Ventures and Operating Agreements

Major legal agreements; joint venture agreements; LNG sale and purchase agreements: terms, history, relationships, negotiating team composition, legal terminology issues; charter party for LNG ships, receiving terminal access agreements.

LNG Commercial FundamentalsEnergy Project EconomicsProject Financing of LNG ProjectsIntroduction to FEED Contracts and Tendering Processes

Project economics: economic yardsticks, cash flow, tax expenses, internal rate of return, risk assessment, sensitivity analysis; project financing: commercial debt structuring; project risk analysis; FEED and EPC tendering and contracting.

LNG Project ManagementThe LNG Stage-Gate ProcessStage 1: Assessment of LNG Project OpportunityStage 2: Project Development Optimization Early Estimation of Project Costs and Schedule Management of LNG Project Environmental and Socioeconomic ImpactsStage 3: Requirements and Execution Planning

Stage-Gate project management process; project alignment and integration of the full value chain; fulfilling the requirements of Stages 1 and 2: from opportunity assessment to project optimization; planning for Stage 3. Estimating project costs, schedule, risks, environmental and social impacts, and capital funding.

Overview of the Stage-Gate Project Management ProcessThe development cycle of a major oil and gas industry capital projects. The use of the Stage-Gate project management process to enhance decision making, risk management, project schedule, and cost control.

Execution Strategies for FEL (Front-End Loading) and FEED (Front End Engineering Design)Front-end loading, design basis for FEED, quality of deliverables from FEED, FEED contractor pre-qualification and selection, FEED to EPC transition.

Introduction to EPC (Engineering Design, Procurement, Construction) Contract DevelopmentProject contracting strategies, EPC contractor roles and responsibilities, contract development and tendering process, bid package development, criteria and methodology for EPC contractor selection, lump sum vs. reimbursable contracting options, agreements and guarantees.

Estimating Project Costs and ScheduleCost estimating classifications, approach to cost estimating for FID, estimating capital and operating costs, project schedule and contingency assessment, calibration of costs and schedule compared to other projects.

Introduction to Stage 4: Project Execution PlanningStage 4 execution planning, project governance, scope and technical issues, management of change processes, interface management, contracting plans, work breakdown structure, SHE plans, project economics and funding plans, communications plans.

Detailed Engineering Activities and CoordinationEPC contract award, global and detailed engineering activities, interfaces with procurement and construction, detailed engineering organization and governance.

Procurement Activities and CoordinationGlobal procurement strategies, success factors, quality control and quality assurance systems, total lifecycle cost analysis, interfaces with detailed engineering and construction, contract administration.

Construction Planning and Management PrinciplesFlawless execution needs, plant layout and plot plans, site prep and laydown areas, material logistics and control, construction quality control, interfaces with detailed engineering and procurement, multi-contractor interface management, construction progress stewardship, handover to commissioning.

Construction Leadership Implementing SHE PrinciplesSafety leadership and culture; safety management systems, safety pyramid and stewardship, incident prevention, incident evaluation, root cause analysis, proactive assessment of safety in the workplace, cultural diversity, related challenges.

Completion of Construction, Commissioning and StartupKey elements of startup, organizational design, safety during commissioning, pre-startup audits, training requirements, coordination with upstream and downstream facilities and customers, development of punch-list items and handover to operations.

Project Closeout, Reappraisal, and Long-Term Operations Systematic capture of post-project learnings: project closeout documentation, investment reappraisal techniques, look-backs and comparison with FID. Expanding plant capacity and managing an LNG facility and relationships after startup.

12 13


LNG BUSINESS FUNDAMENTALS

The sessions are identified in brown and the content of one or more lectures are shown below these titles.

05



MANAGEMENT OF MAJOR INTERNATIONAL

PETROLEUM PROJECTS: LNG CASE STUDY

DEVELOPING NICOILSSTRATEGIC PLAN: NICOLA

This business game is an integral part of the learning process. Participants, divided into teams, make real-life strategic decisions that commonly confront managers in the international petroleum business today.

Teams have been retained to work with a small U.S. company of exploration specialists, Nicoil, that has made a major oil and gas discovery on a shallow offshore block licensed by the Republic of Nicola, an island republic off the west coast of Africa. Reports state that two major discoveries were made: an oil reservoir containing an estimated 50 million barrels in-place and a deeper gas discovery containing an estimated 5 TCF in-place. The team assignment is to develop a strategic plan for the company.

A consultant has provided the company with a menu of options that it could pursue to maximize the value of its discoveries. It will be up to teams to decide on Nicoils business strategy and then prepare and implement a strategic plan.


n Identify Nicoils strategic plan, vision, and

mission statement

n Convert strategic plan to Balanced Scorecard

n Adopt Balanced Scorecard to implement plan

n Identify Nicoils corporate culture

WHO SHOULD ATTENDThis program is designed specifically for mid- to senior- managers and supervisors from all sectors of the oil and gas industry who wish to enhance their competencies in four essential management areas.

INSTRUCTORSDavid A. T. Donohue, PhD, JDCharles Brankman, PhDJohn B. (Jack) King, MBAElizabeth MacDonald, MARobert F. Ryan, MSKermitt Walrond, PhD

Leadership Skills Needed for High Performance OrganizationsEffective individual and team leadership and management: motivation, managerial styles; organizational climate; goal setting and action planning; leading change methodology; simulation, presentation, discussion, case studies, small group work, and assessment.

Leadership Case Study: Transforming the U.S. Marketing and Refining Division of a Major Oil CompanyHow a major oil company went from last to first in net margin per gallon in the marketing and refining of gasoline in the U.S. How strategic planning, leadership skills, and the use of the Balanced Scorecard were fundamental to this success.

Essential Negotiation Skills: A Process for Positive ResultsThe essentials of positive negotiation: the process of positive negotiation developed at the Harvard Negotiation Workshop applied to a petroleum case study. The key steps you will take to successful negotiations are:

Step One: Discover Underlying Interests of the Parties Underlying motivations; needs and concerns, fears and aspirations; understand your interests; understand the interests of the other side.

Step Two: Generate Options to a Negotiated Solution Inventing options to meet underlying interests; option as a possible agreement but not a commitment; obstacles that inhibit the invention of options.

Step Three: Identify and Use Independent Standards Making negotiation a joint search for independent standards; use standards to persuade and protect; distinguish which standards are appropriate.

Step Four: Deal with People Problems Separate the people from the negotiating problem; use people techniques to solve people problems: acknowledge emotions without blaming, improve communication, listen actively.

Step Five: Generating Alternatives to a Negotiated Solution Explore alternatives to the existing negotiated outcome; improve the terms of the negotiations; have an alternative solution in your back pocket; enhance confidence in the negotiating process.

Step Six: Reaching Closure Think about closure before you begin negotiations; move toward closure gradually as negotiations proceed; start with a framework for agreement; only agree to everything at the end.

Effective Business CommunicationSetting a communication strategy: credibility, persuasion, and channel choice. Presentation structure: writing vs. presentations vs. meetings vs. one-to-one conversations; writing more effectively; making effective presentations; running efficient meetings; speaking effectively one-on-one. Case studies and workshop sessions.

Strategic Planning and ImplementationMajor trends and drivers of change within the international oil and gas industry: anticipating the future throughout the oil and gas value chains. Latest approaches to strategic planning and its importance for setting company vision and goals; effective implementation of strategy; planning and implementation of the plan using the Balanced Scorecard. Historical structure of the international oil and gas industry. Examples of strategic planning by key international companies including Petrobras, Mobil Oil, and others.

14 15


LEADERSHIP AND ESSENTIAL NEGOTIATION SKILLS

This two-week program is designed for mid-to-senior managers and supervisors from all sectors of the oil and gas industry who seek to enhance four essential critical management skills: Leadership, Negotiation, Business Communication, and Strategic Planning. The program is taught by highly regarded instructors who have broad and practical management experience in the international oil and gas industry or are specialists in the area in which they teach.06

This program is one in a million. I have attended several

professional and management courses in the U.S. and

Europe, but IHRDC outperforms them all.2013 Participant




EFFECTIVE BUSINESS COMMUNICATION AND STRATEGIC PLANNING

Essential Skills for Oil and Gas Professionals

IHRDCs Robert Ryan conducts an interactive

Leadership Skills session.

Republic of Nicola

Atlantic Ocean

AFRICA

International PetroleumManagement Certificate ProgramFor more than twenty years, participants have consistently called this The BEST management program in the petroleum industry today! The four-week program provides learning in four key areas and includes compelling lectures by a strong and diverse faculty, as well as team participation in IHRDCs unique and challenging oil and gas business games.

INTERNATIONAL PETROLEUM BUSINESS GAME: SANDLAND

The business game during Units One and Two is an integral part of the learning process. Participants, divided into teams, make real-life technical, financial, and market decisions that commonly confront managers in the international petroleum business today. Team performance is measured on a financial basis and is catalyzed by healthy competition.

The international petroleum business game takes place in Sandland, a fictitious country on the west coast of Africa. Team objectives include developing oil and gas reserves and deciding on the optimal way to develop and market the production. During each workshop session, teams are provided with technical and economic background that serve as basis for decisions to be made during that session. Team decisions are made and require a commitment of both capital and operating funds and occur during the following intervals: three years of exploration, two years of development, and fifteen years of production.


n Introduction to the workshop

n Negotiating the right to explore in Sandland

n The exploration survey stage

n Exploration and delineation drilling

n Reserves estimation and field development

n Gas processing

n Oil and gas pipelines and port facilities

n Sandland operations accounting

n Combined-cycle power plants

n Oil tanker charter decisions

n Refinery development decisions

n Financing the port expansion

n Ammonia plants

n Gas export pipeline decisions

n Crude oil marketing decisions

n Strategic planning and decision analysis


WHO SHOULD ATTENDThis program is intended for managers in the many functional areas of the international petroleum and natural gas industry, including exploration, production, refinery and petrochemical operations, marketing, law, human resources, accounting, and finance. More than 1,700 managers have taken this program, including individuals who hold very senior positions in the oil and gas industry.

INSTRUCTORSDavid A. T. Donohue, PhD, JDMeg Annesley, BS Erhan Aslan, PhDCharles Brankman, PhDY. Serdar Dogulu, PhDBradford R. Donohue, MBA, CFAMarshall E. Frank, BSJohn B. (Jack) King, MBAShashi Kumar, PhDMichael Lynch, MSSkip Maryan, JDRobert Meyer, MACarlos Peralta, MBAKris Ramanadhan, PhDRobert F. Ryan, MSJack A. Slotnick, CPEARobert W. Taylor, MSLaura Varela, MS EngKermitt Walrond, PhD

Overview of the Energy Industry Oil and gas measurements and units; the value chains; market structures; worldwide oil and gas economics; major players; evolution of the integrated oil and gas business.




Field Development and Production CycleOnshore and offshore field development and long-term production subsurface design; reservoir fundamentals and reserves estimation: field development; inflow performance; integrated reservoir management; and enhanced recovery. Surface facilities design: design for both onshore and offshore operations; production operations and management; investment analysis and reporting of performance; case studies.

Gas Processing and Marketing of LPGsProperties of gas and gas liquids; processing of associated gas; markets for LPGs; economics of natural gas plants.

Crude Oil and Natural Gas Pipeline SystemsIntroduction to crude oil and natural gas pipelines; design, construction, and operation of pipeline systems; estimating project costs; pipeline contracts and tariffs; new pipeline developments.

Measuring Financial PerformanceHow companies report to their shareholders; GAAP principles; income statement; balance sheet; cash flow statement; equity statement; taxation and tax codes; preparing corporate financials; the audit; reading a major company annual report; measures of performance and the setting of company goals.

Petroleum Industry Accounting and TaxationSuccessful efforts vs. full-cost accounting; corporate taxation; petroleum taxation; accounting for host government and joint venture agreements; supplemental reserves reports included in annual reports.

Unconventional Oil and Gas ResourcesA comprehensive and practical understanding of the processes that are applied in the development of unconventional oil and gas projects, by looking at some active investment areas.

Energy Project EconomicsEconomic yardsticks; project cash flow before and after tax; tax expenses and benefits; net cash flow stream and payout; time value of money; opportunity cost and present value of net cash flow; discounted cash flow analysis and internal rate of return; risk assessment and sensitivity analysis; examples of the economic analysis of energy projects.

Worldwide Petroleum EconomicsWorldwide energy supply; demand; reserves; pricing: corporate strategy; recent history and prediction of future trends; how petroleum economists make predictions.

Markets for Associated Natural GasThe natural gas value chain: industry structure and regional markets, interfuel competition; gas distribution; regulation and deregulation; economics and markets for gas, including combined-cycle power plants, LNG, ammonia, methanol, and gas-to-liquids.

Refining and PetrochemicalsRefinery: capacity evolution; technology changes; capital and operating costs; profitability; net-back estimation and recent trends. Petrochemicals in perspective: links to refining; key product families; industry drivers: cost of production, supply and demand; profitability and price forecasting; prospects for the future: maturity, environmental concerns, global competition.

Crude Oil Tanker TransportationThe tanker industry and market trends: an overview of the main characteristics of crude tankers; capital and operating costs; pollution at sea and new regulations; calculating tanker transportation rates; Worldscale and charter arrangements.

Marketing of Crude Oil and ProductsDevelopment of the free market for oil; current international market structure; regional markets: physicals, futures, forwards, derivatives, options; roles of participants, price formation, price volatility; price reporting; crude oil and product pricing; negotiating and pricing petroleum sales contracts; introduction to hedging and price risk management.

Products DistributionDistribution and retail marketing of petroleum products; structure of the margins realized along the distribution value chain; transitions in the marketing of transportation fuels; economics of the modern gasoline station.

16 17

UNIT ONE SEPTEMBER 14 18, 2015

UPSTREAM SECTORS, PROJECT ECONOMICS, AND PETROLEUM ACCOUNTING

07


FULL PROGRAM DATES: SEPTEMBER 14 OCTOBER 9, 2015

UNIT TWO SEPTEMBER 21 25, 2015

DOWNSTREAM SECTORS AND PETROLEUM ECONOMICS

Ann

RefinerySite

Highway 1A

High

way 1

San

dland

River

AtlanticOcean

Ann

BradsCove



Outstanding, very engaging and rewarding

with a lot of new insights and learnings.2014 Participant

25th

LATIN AMERICA POWER WORKSHOP: SUCRE

During Unit Three, teams are asked to develop a realistic CCGT power project in the Republic of Sucre, a fictitious country in Latin America. Each team is asked to prepare a business plan for the project, which will include a set of decisions with respect to construction, fuel supply and power purchase agreements, EPC and O&M contracts, and financing. Decisions will be run over 15 years of simulated operations for the business game environment.


n Project description, management, and

market analysis

n Project economics and proforma analysis

n Project schedule and management plan

n Identifying the project risks

n Reviewing the financing term sheet

n Design the project financing

n Review the fuel supply and power

sales agreements

n Evaluation of performance and presentation

of results

International PetroleumManagement Certificate Program

DEVELOPING NICOILS STRATEGIC PLAN: NICOLA

During Unit Four of this program, teams have been retained to work with a small U.S. company of exploration specialists, Nicoil. They have made a major oil and gas discovery on a shallow offshore block licensed by the Republic of Nicola, an island republic off the west coast of Africa. Reports state that two major discoveries were made: an oil reservoir containing an estimated 50 million barrels in-place and a deeper gas discovery containing an estimated 5 TCF in-place. The team assignment is to develop a strategic plan.

A consultant has provided the company with a menu of options that it could pursue to maximize the value of its discoveries. It will be up to teams to decide on Nicoils business strategy and then prepare and implement a plan to achieve strategic and business goals.


n Identify Nicoils strategic plan, vision, and mission

n Prepare a big picture view of Nicoils needs

and opportunities



The Process of Commercializing Energy ProjectsKey steps in the formation and commercialization of an energy project from opportunity to operation; screening and feasibility analysis; design and development; key project agreements; preparing proforma financial projections; risk analysis and risk management; project management; project definition; resource scheduling, cost estimating; project controls; cost engineering; detailed engineering; procurement; construction management; project accounting and auditing; environmental management. Project Management Institute (PMI) body of knowledge and certification requirements.

Project Planning and Management of Energy ProjectsSteps in the development of a petroleum project: screening studies, feasibility studies; detailed engineering, environmental studies; financing construction and operation. Project management examples of energy projects: the integrated planning and development of an international combined-cycle power plant. Case study: Developing the Steuben Gas Storage Facility.

Health, Safety, and Environmental (HSE) Challenges in Petroleum OperationsWorldwide developments in HSE performance, management, and regulations; key technical, managerial, and societal issues and responses; sustainable development, eco-efficiency, social impact; factors that affect cost; integration of HSE in the business; risk acceptance and tolerance, due diligence, accountability, liability; integrated health, safety, and environmental management systems, international standards, ISO 14001 certification, EMAS verification, audit, reporting and assurance to stakeholders.

Petroleum LawKey legal issues in petroleum management; transnational and international oil and gas law; the role of law in commercial transactions: role of the legal system; role of the attorney; commercial relationships; host country agreements and government relations, joint venture agreements; oil and gas contracts and agreements; crude oil sales and transportation; risk management and dispute resolution.

Financing of Energy ProjectsFinancing petroleum projects; sources of debt and equity; preparing the financing proposal; negotiating financing; reaching the decision to proceed; project financing: structuring, role of multilateral and bilateral agencies; case studies: project financing of international oil, gas, and power projects.

Industry Regulation, Deregulation, and Convergence The nature of regulation in the energy sector; history and current state of the gas industry deregulation process at the wholesale and retail markets: U.S., Europe, and elsewhere; effect of deregulation on the structure of the industry; convergence of gas and power.

Leadership Skills Needed for High Performance OrganizationsEffective leadership and management: motivation, managerial styles; organizational climate; goal setting and action planning; leading change methodology; simulation, presentation, discussion, case studies, small group work, and assessment.

Leadership Case Study: Transforming the U.S. Marketing and Refining Division of a Major Oil CompanyHow a major oil company went from last to first in net margin per gallon in the marketing and refining of gasoline in the U.S. How strategic planning, leadership skills, and the use of the Balanced Scorecard were fundamental to this success.

Current HR Practices in International Oil and GasCurrent HR policies and procedures, organizational design, recruitment, manpower planning and development in the performance of the organization; defining job-specific competency models and development plans.

Strategic Planning and ImplementationMajor trends and drivers of change within the international oil and gas industry: anticipating the future throughout the oil and gas value chains. Latest approaches to strategic planning and how important such plans are for setting company vision and goals; effective implementation of strategy; planning and implementation of the plan using the Balanced Scorecard. Historical structure of the international oil and gas industry. Examples of strategic planning by key international companies including Petrobras, Mobil Oil, and others.

Essential Negotiation Skills: A Process for Positive ResultsThe essentials of positive negotiation: the process of positive negotiation developed at the Harvard Negotiation Workshop applied to a petroleum case study. The key steps you will take to successful negotiations are: identify interests, invent options, use standards, manage people problems, develop alternatives, BATNA, and reach closure. Team participation in an oil and gas case study.

18 19

UNIT THREE SEPTEMBER 28 OCTOBER 2, 2015

PETROLEUM PROJECT DEVELOPMENT07


UNIT FOUR OCTOBER 5 9, 2015

KEY SKILLS FOR THE PETROLEUM MANAGER Republic of Nicola

Atlantic Ocean

AFRICA

continued

Llan

osRiv

er

High

way 1

SucreNational

Forest

Highway 1A

Santos

Grid Site

Field Site

Gas

Carlos Cove

Pacific Ocean

Refinery

140 km

25th

HR Processes, Competency Development, and Change Management ProgramThis program is ideal for those who seek a firm grounding in the Human Resource (HR) challenges facing the international oil and gas industry today, and the ways in which HR can contribute to implementing strategic plans, including the management of change.

DEVELOPING NICOILS HR AND STRATEGIC PLAN: NICOLA

This business game is an integral part of the learning process. Teams of participants make real-life strategic and HR decisions that commonly confront managers in the international petroleum business today.

Teams have been retained to work with a small U.S. company of exploration specialists, Nicoil, that has made a major oil and gas discovery on a shallow offshore block licensed by the Republic of Nicola, an island republic off the west coast of Africa. Reports state that two major discoveries were made: an oil reservoir containing an estimated 50 million barrels in-place and a deeper gas discovery containing an estimated 5 TCF in-place. The team assignment is to develop a strategic plan, which includes a comprehensive HR plan.

A consultant has provided the company with a menu of options that it could pursue to maximize the value of its discoveries. It will be up to teams to decide on Nicoils business strategy and then prepare and implement a Workforce Success Strategy to achieve strategic and business goals.


n Identify Nicoils strategic plan, vision, and mission

n Prepare a big picture view of Nicoils needs

and opportunities



n Planning the Nicoil organization and

Workforce Scorecard

n Identify Nicoils corporate culture

n Build the Workforce Scorecard

n Build Nicoils leadership

n Add management and specialists functions

n Add O&M specialists

n Identify HR best practices for Nicoil

n Plan the merger of ManOil with Nicoil

n Team presentations of HR plans

WHO SHOULD ATTENDThis program is designed specifically for mid- to senior- managers and supervisors from all sectors of the oil and gas industry who wish to enhance their competencies in essential HR management areas.

INSTRUCTORSDavid A. T. Donohue, PhD, JDRobert Meyer, MAKevin Rohan, MBAJoseph Schechtman, MSCarol Ann Sharicz, PhDRobert W. Taylor, MS

Overview of the Petroleum Industry Today Oil and gas measurements and units; the value chains; market structures; worldwide oil and gas economics; major players; evolution of the integrated oil and gas business.

Systems Thinking: Developing a Big Picture VisionBenefits of systems thinking to HR professionals; thinking systemically; attitudes and behavior; and understanding complexity.

Building the Workforce ScorecardIntroduction to the Workforce Scorecard; methods to align workforce withcorporate strategy; measuring workforce success through metrics; threechallenges to successful implementation; integrating with the Balanced Scorecard.

Emotional Intelligence and the Corporate CultureOrganizational culture and change; emotional intelligence and applying emotional intelligence in your organization.

Human Resource ManagementHR processes; HR strategy model; building a manpower plan; source of personnel; recruiting and compensation.

Developing Competent Managers, Specialists, and O&M Personnel in the Oil and Gas IndustryTypical competency levels, competency assurance system and process; effective development options using traditional and technology-based learning methods.

Change Management OverviewUnderstand key principles, systematic framework, and tools for an effective change. Elements of the overview include stakeholders; culture; values; HR target model; future vision; stakeholder model; organizational design; manpower and succession planning.

Change StrategyDevelop a strategic change plan that includes both risks and durability. Elements of change strategy include a seven-element grid for planning; stakeholder assessments; inquiry and feedback sessions and preliminary communications.

The Change PlanUnderstand the blending of change elements into an overall strategic plan. Elements of the change plan include tactics by phase; by stakeholder; change communications, and project plan vs. change plan.

Change AssessmentUnderstand how a proposed change will impact an organization, and how to create an approach to achieve the vision. Elements of change assessment include the change management measurement model; translating the change into phases; and 3 x 3 change risk assessment.

Change Planning and CommunicationDevelopment of a sample tactical change plan that is easy to understand by all stakeholders. Elements of change planning include communication and engagement planning; project plan vs. change plan; and integration with day-to-day business.

Change LeadershipUnderstand that leaders will anticipate the emotional changes of stakeholders. Determine the support they will require. Elements of leaders in change include executive coaching before, during, and after; emotional intelligence Meyers Briggs, DISC, and Seven Points; Performance Dip and Zero-Sum Game.

Sustaining the ChangeValidate that a change implementation plan is geared for sustainability. Sustaining the change includes measures and elements; survey and feedback techniques, and the change management model.

Individual Personalities:Whole Brain TheoryWhole Brain Theory and the Benziger Model; thinking styles and the natural giftedness of each individual; falsifying type: personal and societal costs; and the four specialized functions of the brain.

20 21

UNIT ONE SEPTEMBER 28 OCTOBER 2, 2015

HR MANAGEMENT FOR OIL AND GAS MANAGERS AND SUPERVISORS

08


FULL PROGRAM DATES: SEPTEMBER 28 OCTOBER 9, 2015

UNIT TWO OCTOBER 5 9, 2015

CHANGE MANAGEMENT AND COMMUNICATION

Republic of Nicola

Atlantic Ocean

AFRICA

This program is a must for all HR practitioners that

would like to grow in this profession. 2014 Participant

PETROLEUM AGREEMENTS BUSINESS GAME: GANDA

The workshop setting is the Republic of Ganda, a small country located in East Africa across the border from new oil discoveries in Uganda. Your company wishes to explore for oil and gas in Ganda and has approached the government to negotiate one or more exploration agreements, including a Concession Agreement and/or a Production Sharing Contract. Another company has expressed an interest in participating with you in the ventures. Your team is to analyze the opportunities and select the one it finds most appealing. You must then explore, develop, and produce the discovered hydrocarbons and make key market decisions. Your major responsibilities are to review all legal documents beginning with the negotiation of the host country agreement and ending with the crude oil and natural gas sales agreements. You will manage field production through its 20-year lifecycle.


n Review of exploration opportunity, preparations

for the first meeting with the government

n Review of the fiscal provisions of the Ganda exploration

agreements and selection of the one that you wish to negotiate

n Economic analysis of the fiscal term options of

the Ganda exploration agreement

n Negotiation of the seismic and drilling agreements

n Review of a typical drilling agreement

n Negotiation of oil lifting, crude oil sales, and

transportation agreements

n Review of oil sales agreement

n Exploration and reserves estimation

n Fulfilling government regulations

WHO SHOULD ATTENDThe program is most beneficial to energy industry professionals who are currently working as mid-level managers, administrators, technical, or government personnel. It is especially useful to individuals who routinely interact with lawyers in administering contracts, or who work with lawyers on business teams or in a negotiating setting. Young lawyers who have recently entered the petroleum business may also find this program useful.

INSTRUCTORSDavid A. T. Donohue, PhD, JDErhan Aslan, PhDCharles Brankman, PhDY. Serdar Dogulu, PhDJohn B. (Jack) King, MBASkip Maryan, JD

Introduction to the Legal Process, the Petroleum Lawyer, and Basic Principles of International Petroleum LawIntroductionpurpose of commercial law (predictability, control of behavior); how laws are organized: civil law, common law, topical laws (e.g. environmental law, criminal law) and regulations; how laws work (enforceability); difference between a law question and a fact question; method of legal analysis (how lawyers are trained to approach problems). Lawyershow the law profession is organized (by employer and specialty); lawyers inside petroleum companies; lawyers outside petroleum companies (law firms and government lawyers). International petroleum law basic principlessovereign ownership; rule of capture; sanctity of contract.

Legal Considerations When Entering a New CountryHow to use a lawyerfatal flaw analysis; universal common issues (authority, institutional risks, e.g. dispute mechanisms generally), local law, treaties (how can they help or hurt); four selected common issues (export rights, banking and currency conversion, structure of foreign investment, and environmental laws); example: Bilateral Investment Treaty.

Host Country Agreements: Legal Structure and Fiscal TermsOverviewproduction sharing; tax and royalty; service contract; hybrid. Special problems contracting with a governmentauthority; police power and expropriation; unilateral changes (creeping expropriation); sovereign immunity; stability clauses.

Standard Joint Interest Petroleum Agreements: Joint Venture and Joint Operating AgreementsWhat they are and how they work; outline of provisions; the most important issues including promises made to the government, discovery vs. commercial discovery, standard of performance, project governance (plans, budgets, meetings, voting, disagreements, transfers, withdrawal, disputes, basic accounting). Unitization: concept and five major issues to negotiate.

Principles and Applications of Contract Law and Petroleum Service AgreementsOffersa promise; how offers are made; bid solicitations (RFPs); terms of an offer. Acceptancehow acceptance is made; acceptance varying terms; cultural and language problems in international contracting. Written contractswhy writing is important (frauds, parole evidence rule); examination of important clauses (consideration, capacity to contract, entire agreement, changes, waiver). Oil and gas industry examples: Petroleum Service Agreements.

Forming Business Organizations: Joint Ventures, PartnershipsThree Modelscorporation; partnership; unincorporated joint venture. Taxationpermanent establishments; double taxation; tax treaties; use of SPVs (tax deferrals and sales). Three structures comparedliability; taxation; operational considerations; acquiring and divesting interests in a business. Oil and gas industry examples.

Agency, Products, and Liability Law: Subcontractors, Suppliers, Warranties, Indemnity, and InsuranceTort lawduty to others; the concept of negligence; vicarious liability (acts of an agent); damages (actual, consequential, punitive). Warrantiespromises of quality or performance; expressed and implied warranties; disclaimers. Indemnityrisk sharing inside the contract; knock for knock indemnities; no fault provisions; enforceability. Insurancerisk sharing outside the contract; who is insured; primary insurance and contribution; subrogation.

Drilling Contracts: Management of Problems When Drilling a WellThe drilling contracta review of offshore international drilling contract terms with discussion related to: liability; damages; warranties and disclaimers; indemnity; insurance. Drilling and the environmentinternational corporate responsibility; environmental standards and lending; review and discussion of an environmental law in host government contracts and in the joint operating agreement; abandonment of operations.

Oil Lifting, Sales, and Hedging AgreementsLifting Arrangementsthe terminal; quality bank contracts and how they work; lifting schedule preparation; schedule implementation; failure to schedule or lift. Oil and product salesUCC sales law; UN sales law; sales law comparison of key terms; typical sales arrangement; standby letters of credit. Hedging agreements: NYMEX standard agreement.

Transportation: Crude Pipelines and ShipsPipeline law issuesright of way and condemnation; regulated vs. unregulated; tariff setting; access; capacity reservations; curtailments. Shipping law issuesadmiralty law principles; vessel charters (rights of owners, rights of charterer, third party operators); bills of lading (negotiable and non-negotiable).

Natural Gas and LNG Sales and Transportation AgreementsNatural gas law issues: physical and financial agreements; typical terms and conditions; natural gas pricing and major trading hubs; special considerations for LNG; natural gas pipeline contract terms; terms and conditions of standard forms.

Current Legal IssuesDiscussion of such topics as